View From The House - 6th April 2000
Reprinted From The Lichfield Mercury
The Budget was as we expected: the beginning of the general election
campaign. We have seen money released mainly to the beleaguered NHS and
rather less to education. I welcome any extra money particularly at a time
when the British economy seems to be doing so well.
But why have we had to wait so long? Gordon Brown claims that he was mean
in the first three years of the Labour Government because he was keeping to
Conservative Party spending plans. But that just isn't true; it's just
another Labour soundbite. The former Chancellor of the Exchequer, Kenneth
Clarke, made the true position very clear a few weeks ago. So, as a
consequence, the health service has declined in our area and nationally as a
whole.
Firstly, GP fundholding was abolished. This system gave money directly to
GPs to spend on behalf of their patients as they thought fit. Local
doctors, not health bureaucrats, could decide where patients should be
treated - including the Victoria and Hammerwich Hospitals. The Government
objected to this on the basis that this system introduced a "two tier health
service". This is correct. Only half of all doctors nationally were GP
fundholders and they were able to provide a better service than
non-fundholders. The problem for the Lichfield constituency was that all
our doctors were fundholders. We all enjoyed a better service as a
consequence. So instead of making all the GPs in the UK fundholders,
driving standards upwards, we now have a half way house which, frankly, is
not as good. A good example of a Labour Government greying down. Why
didn't the Chancellor use all the money he has available to provide
fundholding to all doctors in Britain and move standards up for a change?
Secondly, Gordon Brown inherited a solid financial base. Instead of
using the money, he hoarded it for 3 years. The consequence is that the
South Staffordshire Health Authority will have to make some tough decisions
regarding the future of local hospital services. At the time of writing,
it would seem that the Hammerwich and Barton hospitals will close and that
the maternity and dialysis units at the Victoria Hospital will close. It
is even possible that the Victoria Hospital itself will close and the
remaining services be moved to the St Michael's Hospital site.
I only hope that this cynical last minute injection of money into the NHS by
Labour into the run-up to a General Election will be enough and in time to
prevent this from happening. Already, analysts are saying that the money
announced by the Chancellor is not as much as was stated and much of it is
already committed to projects previously announced by the Government some
months ago. So only a proportion is really "new money". (If the economy
had been doing badly in the last 3 years, I could have understood the delay.
But it hasn't).
The day after the Budget, I asked Tony Blair in Prime Minister's Question
Time whether he would intervene to stop hospital closures in south
Staffordshire. He didn't even say he would "look into the matter" -
the standard reply. This was very disappointing indeed. People in
Burntwood and Lichfield will now be holding their breath to see what is the
outcome of future in-patient care in our area.
Finally, a budget postscript. We now have the most expensive petrol in
Europe, possibly the world. A gallon of petrol in Britain which produces
oil now costs £3.64 compared with £2.82 in Germany which does not. In the
US, an imperial gallon of 'gas' costs around 95p! On average, motorists
must now pay just under £300 a year extra for petrol than was the case 3
years ago. Most of that is because of fuel tax rises. This not only puts
up the price to you and me at the petrol pump, it also puts up the cost of
distribution including basic commodities such as food. That stealth tax
hurts everyone.